I just published a new long-form piece through OSAM entitled “Upside-Down Markets: Profits, Inflation and Equity Valuation in Fiscal Policy Regimes.”
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U.S. equity index funds have grown dramatically in recent decades, from a negligible $500MM in assets in the early 1980s to a staggering $4T today. The consensus view in the investment community is that this growth is unsustainable. Indexing, after all, is a form of free-riding, and a market can only support so many…
The prior piece received a much stronger reaction than I expected. The topic is complicated, with ideas that are difficult to adequately convey in words, so I’m going to use this piece as a follow-up. I’m going to look at the specific example of the Tech Bubble, which is a clear case in which the broad adoption of a…